The basic process: three steps and two to three business days
To transfer money from PayPal to your bank account, you link your bank details to PayPal, then initiate a transfer from the PayPal app or website. The money lands in your bank account within two to three business days. PayPal does not charge a fee for standard transfers to a linked U.S. bank account, but the timeline depends on your bank's processing speed, not PayPal's.
The transfer happens in one direction only: from your PayPal balance to the checking or savings account you have registered with PayPal. You cannot transfer directly from a credit card or debit card linked to PayPal; the money must sit in your PayPal balance first.
Key Takeaways
- Standard transfers from PayPal to a linked U.S. bank account are free and take two to three business days.
- You must link your bank account to PayPal before you can transfer, and PayPal will verify it with two small deposits.
- Instant transfers to a debit card cost 1.5% of the amount (minimum 25 cents) but land within 30 minutes.
- If a transfer fails or is delayed, check your bank's routing and account numbers, and contact PayPal support with your transaction ID.
- Money in your PayPal balance is separate from money in linked cards; only your balance can be transferred out.
How to link your bank account to PayPal
Open PayPal on the web or app and go to Wallet or Settings (depending on your device). Select Link a Bank Account or Add Bank. Enter your routing number, account number, and account type (checking or savings). PayPal will then send two small deposits—usually under one dollar each—to your bank account within one to two business days.
Once those deposits arrive, go back to PayPal and confirm the amounts. This verification step proves you own the account. After confirmation, your bank account is linked and ready for transfers. If you do not see the deposits after three business days, check that you entered the routing and account numbers correctly, or contact your bank to confirm they are not filtering PayPal deposits.
Starting a standard transfer
In the PayPal app, tap Wallet at the bottom. Tap the amount shown as your PayPal balance. Select Transfer Money or Move Money. Choose Transfer to Your Bank. Enter the amount you want to move (you can transfer your full balance or a portion). Review the details and confirm.
On the web, log in, go to Wallet, and click Transfer Money. The steps are the same. PayPal will show you the expected arrival date—usually two to three business days from the date you initiate the transfer. Weekends and bank holidays add time; a transfer started on Friday may not land until Wednesday.
When you need money faster: instant transfers
PayPal offers Instant Transfer, which moves money to a linked debit card in up to 30 minutes. This service costs 1.5% of the amount transferred, with a minimum fee of 25 cents. For a $100 transfer, you pay $1.50. For a $1,000 transfer, you pay $15.
Instant Transfer is only available to a debit card, not a savings account or checking account. If you need the money in your bank account rather than on a card, standard transfer is your only free option. Some banks also offer their own instant transfer services through apps like Zelle or their own platforms; check whether your bank offers this before paying PayPal's fee.
What to do if a transfer fails or does not arrive
If PayPal shows an error when you try to transfer, the most common causes are a mismatch between the routing or account number you entered and what your bank has on file, or insufficient funds in your PayPal balance. Check your PayPal balance first—you can only transfer money that is actually there. Then verify your bank details by logging into your bank's website and comparing the routing number and account number to what PayPal has stored.
If the numbers match and your balance is sufficient, try the transfer again. If it fails a second time, contact PayPal support through the app or website. Have your transaction ID (if PayPal generated one) and your bank's routing number ready. PayPal support can see whether the transfer was rejected by your bank and why. Your bank may also have a record of a failed deposit attempt; call your bank's customer service line if PayPal cannot resolve it.
If a transfer was successful but the money has not arrived after five business days, contact your bank first. Banks sometimes hold deposits for verification, especially if the sending account is new. Your bank can tell you whether the deposit is pending or if there was a processing error on their end.
The difference between your PayPal balance and linked cards
Your PayPal balance is money sitting in your PayPal account—money you received from sales, refunds, or transfers from others. A linked card (debit or credit) is a separate payment method you have authorized PayPal to charge when you make a purchase. These are not the same thing, and only your balance can be transferred to your bank.
If you have a PayPal Cash or PayPal Cash Plus account, your balance functions like a checking account and can be transferred freely. If you have a standard PayPal account, your balance is still transferable, but you may have limits on how much you can transfer per day or per month depending on your account history and verification status. Check your account limits under Settings > Account Limits.
Frequently Asked Questions
Can I transfer to someone else's bank account?
No. PayPal transfers only go to the bank account registered under your own PayPal account. To send money to someone else, use PayPal's Send Money feature, which transfers funds to their PayPal account or email address, not directly to their bank. They would then need to transfer it to their own bank if they want it there.
Why is my transfer taking longer than three days?
Transfers initiated on weekends or holidays do not begin processing until the next business day. Some banks also hold deposits for an extra day or two for verification, especially on new accounts. Contact your bank to check whether the deposit is pending or if there was a delay on their end.
What happens if I transfer money and then close my PayPal account?
A transfer that has already been initiated will still complete, even if you close your account before it lands. However, if you close your account before initiating a transfer, you will not be able to access your PayPal balance. Transfer any remaining balance before closing your account.
Is there a limit to how much I can transfer at once?
Limits depend on your account type and history. New accounts may have lower daily or monthly transfer limits. Check your limits under Settings > Account Limits. If you hit a limit, you can transfer the maximum allowed and then initiate another transfer the next day or in the next billing period.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring money from PayPal to your bank does not create a tax event by itself. However, the money in your PayPal balance may already be taxable income (if it came from sales or services). PayPal reports transactions to the IRS if certain thresholds are met. Consult a tax professional about your specific situation.